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AFH abandons Lighthouse takeover deal

AFH Alan Hudson 700

IFA consolidator AFH Financial Group has pulled out of a potential deal to buy advice network Lighthouse Group saying it is “disappointed” by Lighthouse’s approach to the bid.

In a scathing statement published today, AFH sys it does not now intend to make an offer for Lighthouse, after Lighthouse rejected a £17.4m takeover bid last week.

AFH notes there was a 35 per cent price movement in the shares of Lighthouse, which is listed on Aim, after an initial approach was made on 9 March.

The statement says the offer factored in Lighthouse’s “limited growth prospects” and that Lighthouse is having to hold about 50 per cent of its cash for “regulatory purposes”.

It also alludes to Lighthouse’s “inability to make further distributions or other non-trading payments from its regulated subsidiaries without FCA consent”.

The statement says the AFH board was disappointed by Lighthouse directors’ unwillingness to engage in takeover talks and by statements issued since by Lighthouse that it did not talk to shareholders before rejecting the deal.

AFH says it now cannot carry out appropriate due diligence on the deal so has pulled out.

AFH chief executive Alan Hudson says: “We are naturally disappointed with the reaction of Lighthouse to our indicative proposal which included a mix and match structure for individual Lighthouse shareholders.

“AFH, with its extensive track record of M&A to date, continues to progress its stated organic and acquisitive growth strategy and looks forward to updating the market in due course.” 



Lighthouse rejects £17m AFH takeover bid

Lighthouse Group has rejected a £17.4m acquisition by advice consolidator AFH. A stock market announcement published today reveals AFH approached Lighthouse earlier this month with a takeover deal valuing Lighthouse shares at 13p. However yesterday the Lighthouse Board confirmed it has rejected the initial offer. AFH says it is considering whether it will make changes […]

AFH Alan Hudson 700

Acquisitions push AFH revenues up 40%

Total revenue at advice consolidator AFH Financial grew 40 per cent during 2015 as the firm completed 11 acqusitions. Year end results published today show revenues grew from £15m in 2014 to £21m last year. Pre-tax profits were up by 86 per cent, from £860,000 to £1.6m, while funds under management with ongoing fee agreements […]

AFH Alan Hudson 700

AFH to raise £6.5m in acquisition push

IFA consolidator AFH Financial is aiming to raise up to £6.5m in new funding through a share offering. The AIM-listed firm has issued 2.7m placing share at 165p each and 1.2m subscription shares also at 165p per share. AFH says the placing price is discounted at 12.7 per cent compared to the closing share price […]


Lighthouse profits up 50% but costs bite

Lighthouse Group has reported a 50 per cent increase in its pre-tax profits for 2015 but operating costs rose amid regulatory pressures. Profit before tax was up from £600,000 in 2014 to £900,000 at the end of 2015. Revenues were also up 4 per cent from £47m to £49m with half of the total figure generated […]

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